Dexus · ASX:DXS

Dexus — DEXUS Property Group — Investor Presentation (September 2011)

23 slides from Dexus's investor presentation, September 2011

  1. Slide 1: DEXUS Property Group Investor meetings, September 2011

    TITLEProperty DEXUS SLIDE HEADER Group Sub title (Trebuchet 18 pt) September 2011 Victor Hoog Antink Investor meetings Chief Executive Officer DXS 2009 Annual Results — Slide 1

  2. Slide 2: Group outlook — Positive

    DEXUS PLATFORM Group outlook — Positive SECTOR — AUM/target allocation KEY MESSAGE Driving growth and value Office $4.5bn 60% Leverage through submarket concentration Environment & Stakeholders Stable income and outlook Property Industrial $1.6bn 20% Opportunities for development Capital values impr

  3. Slide 3: Key Financial Outcomes

    KEY FINANCIAL OUTCOMES Results in line with prior guidance — stronger FY12 June 2010 June 2011 % change Key financial metrics FFO $350.0 $358.0 2.3% FFO per security 7.30c 7.40c 1.4% Distribution per security 5.10c 5.18c 1.6% Statutory profit $31.4m $553.0m — Gearing 29.8% 28.4% 1.4% NTA per securit

  4. Slide 4: Funds From Operations

    FUNDS FROM OPERATIONS June 2010 June 2011 $m $m Office 245.1 255.2  Group like-for-like NOI up $8m Industrial 109.9 116.4 Industrial US1 99.2 89.1  Management business contribution Non-core1,2 30.2 18.5 and other operating costs impacted Currency impact on NOI - (12.0) by US internalisation and on

  5. Slide 5: Net Tangible Assets Changes

    NET TANGIBLE ASSETS CHANGES June 2011 cps $m Opening net tangible assets 4,576 95 Investment Portfolio Cap rate Valuation property movement Revaluation of real estate 182 4 Office 60% 7.4% $123m Retained earnings1 107 2 Amortisation of tenant incentives (31) (1) Industrial 22% 8.6% -$14m Fair value

  6. Slide 6: FFO and NTA changes result in ROE 11.8%

    FFO AND NTA CHANGES RESULT IN ROE 11.8% FY11 Return on Equity ROE: 11.8% Funds From Operations $358m 70% payout ratio Distributions 5.2c NTA increase 6.0c Total movement in NTA $302m Opening NTA 95c Quarry Industrial Estate, Reconciliation Road, Greystanes, NSW DEXUS Property Group — Slide 6

  7. Slide 7: DXS Portfolio

    DXS PORTFOLIO Focused platform: robust core returns - leveraged to cyclical upside SECTOR — AUM/target allocation CORE RETURNS ACTIVE RETURNS Prime properties in major CBD’s Development and trading Office $4.5bn 60% (>85% AUM: target 9% IRR) (<15% AUM: target 15% IRR) Environment & Stakeholders Sydn

  8. Slide 8: Office

    DEXUS PLATFORM Office SECTOR — AUM/target allocation FY11 total return: 9.0% Office $4.5bn 60% Geographical weighting Environment & Stakeholders Canberra Auckland Property Industrial $1.6bn 20% 1% 2% Perth 10% Brisbane Industrial US $1.2bn 20% Quality: 8%  39% Premium Sydney 65%  49% A Grade Melbo

  9. Slide 9: Office

    DEXUS PLATFORM Office SECTOR — AUM/target allocation June 2010 June 2011 Office $4.5bn 60% Net operating income $245.1m $255.2m Environment & Stakeholders NOI change (0.7%) 4.1% Property Industrial $1.6bn 20% Like-for-like 0.4% 3.3% Occupancy (area) 95.7% 96.2% Industrial US $1.2bn 20% Occupancy (in

  10. Slide 10: Office Portfolio — Core

    OFFICE PORTFOLIO — CORE Sydney CBD — dominant owner/manager in Sydney’s western corridor 44 Market Street, Sydney 44 Market Street, Sydney  Occupancy increased to 97%  Valuation up 7.4%  Rents up 10% (5% above market)  WALE up to 5.8 years  Incentives 4% below market  FY11 total return 11.3% D

  11. Slide 11: Industrial

    DEXUS PLATFORM Industrial SECTOR — AUM/target allocation FY11 total return: 9.4% Office $4.5bn 60% Geographical weighting Property classification Environment & Stakeholders by book value by book value Property Industrial $1.6bn 20% Adelaide & Brisbane Vacant land Business 6% 14% parks 33% Sydney 57%

  12. Slide 12: Industrial

    DEXUS PLATFORM Industrial SECTOR — AUM/target allocation June 2010 June 2011 Office $4.5bn 60% Net operating income $109.9m $116.4m Environment & Stakeholders NOI change 0.6% 5.9% Property Industrial $1.6bn 20% Like-for-like 1.6% 1.1% Occupancy (area) 98.4% 96.2% Industrial US $1.2bn 20% Occupancy (

  13. Slide 13: Industrial — Active

    INDUSTRIAL — ACTIVE Sydney industrial hotspots — Erskine Park  Local market knowledge and focus creates value  Acquired 7.6 ha Aug 2010 $15.9m ($197/sqm) — Sold two lots at $290/sqm — Strong enquiry for 21,000sqm spec warehouse  Target project IRR: >20% DEXUS Property Group — Slide 13

  14. Slide 14: Industrial US

    DEXUS PLATFORM Industrial US SECTOR — AUM/target allocation FY11 total return: 14.3% Office Office $4.5bn $4.5bn 60% 60% Environment & Stakeholders Property Industrial $1.6bn 20% Industrial US $1.2bn 20% Third Party $6.2bn managed Funds and Capital Funding & capital management DEXUS Property Group —

  15. Slide 15: Industrial US

    DEXUS PLATFORM Industrial US SECTOR — AUM/target allocation June 2010 June 2011 Office Office $4.5bn $4.5bn 60% 60% Net operating income US$87.3m US$78.6m Environment & Stakeholders NOI change (USD) (10.5%) (10.0%) Property Industrial $1.6bn 20% Like-for-like (USD) (12.3%) (4.5%) Occupancy (area) 86

  16. Slide 16: Industrial US

    DEXUS PLATFORM Industrial US SECTOR — AUM/target allocation Property Occupancy Average Retention Office Office $4.5bn $4.5bn 60% 60% value 30 June 11 cap rate FY11 ($m) Environment & Stakeholders West coast 308 96.2% 6.75% 84% Property Industrial $1.6bn 20% Whirlpool 335 100.0% 6.50% — Central 615 7

  17. Slide 17: DXS Portfolio — Active returns

    DXS PORTFOLIO Active returns SECTOR — AUM/target allocation CORE RETURNS ACTIVE RETURNS Prime properties in major CBD’s Development and trading Office $4.5bn 60% (>85% AUM: target 9% IRR) (<15% AUM: target 15% IRR) Environment & Stakeholders Sydney and Melbourne growth Development, trading Property

  18. Slide 18: Office Portfolio — Active

    OFFICE PORTFOLIO — ACTIVE Continue to enhance portfolio quality and earnings stability  4.5 Star NABERS program on track — future proofing our portfolio  1 Bligh (DXS 33.3% interest: $227m) — Targeting stabilisation in 12 months  123 Albert (DXS 100% interest: $382m) — Stabilised with 90% occupan

  19. Slide 19: Industrial Portfolio

    INDUSTRIAL PORTFOLIO Core portfolio stable, strong market drives active investment  Currently $230m invested in value add industrial  Industrial cycle — limited supply and competition — $61m development activity completed: 8.7% yield — $71m development underway, targeting >20% IRR — $390m pipeline

  20. Slide 20: Third Party Investment Management platform

    DEXUS PLATFORM Third Party Investment Management platform SECTOR — AUM/target allocation Office $4.5bn 60%  Mandates outperforming benchmarks — DWPF acquired $256m industrial properties Environment & Stakeholders — Raised $313m new equity and $500m+ transfers Property Industrial $1.6bn 20% Industri

  21. Slide 21: Funding and business risk

    DEXUS PLATFORM Funding and business risk SECTOR — AUM/target allocation June 2010 June 2011 Office $4.5bn 60% Gearing 30% 28% Environment & Stakeholders Headroom $1.2bn $0.6bn Property Industrial $1.6bn 20% Debt duration (years) 3.2 4.2 Cost of debt 6.6% 6.6% Bank/non-bank debt 54%/46% 54%/46% Indus

  22. Slide 22: Summary

    SUMMARY FY12 Earnings guidance: FFO at least 7.65c per security  Office like-for-like growth >FY11  No additional income assumed from 1 Bligh  Industrial trading profits of >$4m  Europe assumed sold in Jan 2012 (avg settlement date)  Lower interest costs following restructure of hedge book in F

  23. Slide 23: DEXUS Property Group

    2011 TITLE SLIDE HEADER Sub title (Trebuchet 18 pt) DEXUS Property Group Victor Hoog Antink Chief Executive Officer DEXUS Funds Management Limited ABN 24 060 920 783 DXS 2009asAnnual AFSL 238163 Results responsible — DEXUS entity for SlideProperty 23 Group

DEXUS Property Group — Investor Presentation (September 2011) on 6ix